Closing of $34,415,000 Private Placement
May 10, 2007
FIRST MAJESTIC SILVER CORP. (FR-V) (the “Company”) is pleased to
announce the successful completion today of the private placement of
special warrants announced April 20. The private placement consisted of
a total of 6,883,000 special warrants sold at a price of $5.00 per
Special Warrant (the “Issue Price”) for aggregate gross proceeds to the
Company of $34,415,000 million and was conducted through Cormark
Securities Inc. (formerly Sprott Securities Inc.), CIBC World Markets
Inc. (as co-lead underwriters) and Blackmont Capital Inc. (the
“Underwriters”). Each Special Warrant will be exercisable, without
further consideration, for one Unit of the Company and will be
automatically exercised for one Unit of the Company on the date the
Company obtains a final receipt for a prospectus qualifying the
underlying shares. In the event the Company has not obtained a final
receipt prior to the date that is 11 weeks after the closing date, each
Special Warrant will be exercisable for 1.08 Units. Each Unit will
consist of one common share and one-half of one share purchase warrant.
Each whole share purchase warrant will be exercisable at a price of
$6.50 for a period of 18 months from the date of closing. The
underwriters received a cash commission of 5.5% of the gross proceeds of
the offering at closing.
The net proceeds of the offering will be used to fund further expansion
of the Company’s La Parrilla Silver Mine, The San Martin Silver Mine and
La Encantada Silver Mine, to satisfy property and vendor commitments
and for general working capital.
First Majestic is a producing silver company focused in Mexico and is
aggressively pursuing its business plan to become a senior silver
producer through development of its existing assets and the pursuit
through acquisition of additional assets that contribute to achieving
its corporate growth objectives.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an application exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our
website at www.firstmajestic.com
or call our toll free number
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
FIRST MAJESTIC SILVER CORP.
President & CEO
This press release includes certain “Forward-Looking Statements” within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements
regarding potential mineralization and reserves, exploration results and
future plans and objectives of First Majestic Resource Corp. are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and the TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.